Self-Select Voluntary Separation Program (SSVSP) - May 2012

Questions & Answers

General

Q. Will an involuntary separation phase be necessary? When will it take place?

A. As announced in June, Fermilab management was able to accept 27 of the total of 32 individuals who applied and did not rescind their application for the self-select voluntary separation program. The involuntary separation process that will complete the workforce reduction has begun, and is anticipated to be complete no later than the end of September.

The involuntary separation process at Fermilab involves many steps that take months to complete. It is guided by instructions from DOE, and Fermilab cannot communicate the details to employees until DOE approval is received in the final phase. The process starts with a detailed assessment of business needs and the budget and resources available in each of the Divisions, Sections and Centers. Next there is a careful review of all positions that have been identified as possibilities for reductions in force. A plan is then submitted to DOE for review, and there are a number of DOE requirements that must be met. Once DOE approves the plan, Fermilab acts as quickly as possible to notify affected employees.

Q. Why are we carrying out the workforce reduction now, when we don’t yet know our final budget for next year?

A. We expect to receive a reduced budget from DOE for the 2013 fiscal year that starts October 1. The workforce reduction process is a lengthy one, and to be able to meet reduced budgets in October we must begin the voluntary separation phase now.

Q. Why is Fermilab still hiring new employees? Will there eventually be a hiring freeze?

A. There are no current plans to implement a hiring freeze. We need to keep the lab running and continue to meet the laboratory’s scientific goals, and for that we need to retain certain skills within our workforce. When positions open for those necessary skills, we try to fill them with our own staff. In some cases, if we don't already have the critical skills needed within the laboratory, we need to fill those positions from outside. We hire new staff to maintain our progress and commitments to DOE, and we’ve continued to bring in people for temporary summer-time positions such as physics internships and necessary seasonal work such as lawn mowing.

Q. In Pier's all-hands presentation in February, he stated that a $30 million reduction would translate into 150 jobs lost. What happened to the other 70 jobs?

A. Thanks to recent Congressional actions on the annual funding bill for DOE, Fermilab's funding prospects for the next fiscal year look better than they did in February. This has allowed us to minimize the size of the workforce reduction. Even with some funding restored to the laboratory, however, we still expect to receive an overall reduction in our budget starting on October 1. With that knowledge, and the knowledge that federal budgets will not be final for at least a few months, we must move forward with a reduction of about 80 employees.

Q. Are all employees who are members of a bargaining unit eligible for the SSVSP?

A. No. Only members of the Machinist and Welders unit and the Drivers unit of the IAM union are eligible for the SSVSP due to a clause in their collective bargaining agreement which specifically covers voluntary separation programs.

Q. Will there be a tally count of the number of applications submitted for SSVSP posted on the website?

A. No, we will not be posting a tally. Because the important number for this voluntary separation program is the number of applications that are accepted, we will not post a running tally of the number of applications submitted. The number of applications that have been accepted will be announced in late June after the affected employees have been notified.

Q. Has the laboratory considered alternative ways of saving money that would avoid workforce reductions?

A. Yes. Staff reductions are always a last resort. The laboratory faces tight budgets and has taken steps wherever feasible to save money across laboratory operations, for example by reducing spending on materials and supplies.

A. All active (not on a paid or unpaid leave of absence or long-term disability), regular, full-time and part-time employees. Part-time employees must be regularly scheduled to work at least 50% of the hours of a full-time employee. Those who are not eligible include: temps, terms, those on phased retirement and inactive employees.

A. A reduction of 80 staff members is required to bring the lab’s workforce into balance with available funding and to match the skills needed for the laboratory’s future projects and programs. Not all volunteers may be approved for the program, however, so more than 80 volunteers may be needed to reach the target for this SSVSP.

Q. How will the lab’s work get done with fewer people? Will we be expected to reach the same goals on the same timelines?

A. No, continuing employees will not necessarily be expected to meet the same goals on the same timelines. The effect of the workforce reduction on continuing employees will vary among individuals and among divisions, sections and centers. Once it is known which employees have volunteered for and been accepted into the SSVSP, Division/Section/Center management will determine which job responsibilities may need to be reassigned or which work may need to be discontinued.

A. The SSVSP is being made available to most employees to increase the chances of reaching the target of 80 volunteers who are accepted into the program, and thus minimize the impact on employees of a involuntary reduction program.

Q. What are the criteria used to decide which employees who have applied for the SSVSP are accepted?

A. Criteria for acceptance may include the laboratory’s need for an employee’s skills taking into account retraining possibilities, the number of individuals with the required skills, whether or not the position will need to be filled following the departure of an employee and the individual’s documented performance.

Q. If a scientist chooses the SSVSP and is working on an ongoing experiment, will there be a mechanism to continue working, including taking shifts and analyzing data?

A. Yes, under certain conditions. The scientist must be eligible for retirement and must apply for and be granted retired guest scientist or scientist emeritus status by their Division/Section/Center head. Retired guest scientists and scientists emeriti may be permitted to retain their email accounts, have access to computer work stations and office space, and continue participation in experiments, should they desire.

Q. Can employees who accept the SSVSP maintain their Abri Credit Union membership? What happens to their checking account, savings account, ACU credit card and loans?

A.Abri Credit Union assures us that membership in the credit union only terminates if the account owner closes his/her accounts. If an employee who accepts the SSVSP has loans that are being repaid through Fermilab payroll deduction then that employee will need to contact the credit union to make other arrangements for payment. Further questions should be directed to the Abri Credit Union at (815) 267-7700, or visit the ACU office on the ground floor of Wilson Hall.

Q. I’m a supervisor. When will I find out if my employees have volunteered and been accepted for the SSVSP?

A. Division/Section/Center Heads will be informed on a regular basis of those who apply. They will approve/disapprove applications with the concurrence of senior laboratory management and the head of WDRS.

Q. I am an H-1 Visa holder and am interested in applying for the SSVSP. Do I need to make arrangements with the Fermilab Visa Office?

A. Besides following the procedures for application, any eligible foreign national in a nonimmigrant status (H-1B, J-1 or F-1) should contact the Visa Office to discuss his or her visa status before making a decision about the SSVSP program.

Q. If I elect to accept the SSVSP, when do I need to leave the laboratory?

A. Employees will separate from the laboratory between June 26, 2012 and July 13, 2012, depending on business needs. Division/Section/Center heads will work to determine the date an employee will separate.

Waiver

Q. What is a general release and waiver?

A. A general release and waiver is a contract. Employees should review the waiver and may consult an attorney. By signing the document, an employee agrees to voluntarily give up his or her right to file certain claims against the employer in exchange for severance benefits. The scope of which rights a release and waiver may require employees to relinquish is limited by governing law. Employees should carefully read and consider the document before signing.

Q. Why is there a general release and waiver associated with this program?

A. The general release and waiver helps close out the employment relationship with departing employees by offering a financial benefit in the form of severance in exchange for the relinquishment of potential claims. The certainty provided by employee-executed release and waivers helps the laboratory minimize financial risk to future planning.

Q. Will signing the general release and waiver affect my right to intellectual property or my obligations under other laboratory policies?

A. By signing the general release and waiver, you agree to abide by all laboratory policies pertaining to the protection and use of intellectual property and all confidential or proprietary laboratory information. After termination of employment, you must continue to comply with applicable laboratory policies regarding intellectual property and confidentiality.

Q. Must I submit a signed general release and waiver to participate in the
SSVSP program or have my application accepted?

A. No. Employees are not required to sign the general release and waiver to participate in the SS VSP program or to have their applications accepted. However, consistent with Fermilab's Personnel Policies, employees must sign and not later rescind the general release and waiver in order to receive severance benefits under the SSVSP program. See http://wdrs.fnal.gov/policies/policy/workforcereduction.html

Severance Pay

Q. Do years of service on a term contract, for example as a post-doc or associate scientist, count toward the determination of the number of years of service for the calculation of severance pay?

A. Yes, if you did not subsequently leave employment at Fermilab. The calculation of years of service for severance pay begins with your most recent hire date. If you were a post doc and/or associate scientist at Fermilab and did not subsequently leave employment at the Lab, that time would be included in the calculation.

Q. If I accept the SSVSP will I be eligible for unemployment compensation?

A. The laboratory does not make decisions about who collects unemployment.
That decision is made by the Illinois Department of Employment Security (IDES). View the IDES website to contact your local office with further questions.

Q. Severance pay is based on years of service. How are years of service determined for an employee who has been at Fermilab for more than one period of time (rehired)? Is it the cumulative years of service for all periods or the years of continuous employment for the current period?

A. Severance, and seniority, is determined by the most recent date of hire by URA/FRA, not the original hire date.

Q. If an employee who takes the SSVSP has not contributed to a Supplemental Retirement Account (SRA) this year, can this employee take a full year’s maximum contribution for an SRA out of the severance pay?

A. No, by law SRA contributions may not be taken out of the severance pay. However, terminal payment of accrued vacation time may be deferred to the SRA.

Q. When will I receive my final wages, accrued and unused vacation time and the severance payment?

A. You will receive your final wages and accrued but unused vacation time
as follows: monthly employees will be paid on their next regular pay date
that is at least 10 days beyond their separation date. Weekly employees
will be paid out the first regular pay date that is more than 10 days from
their voluntary separation date. Severance pay will be paid out after your
seven day rescission period for the SSVSP General Release and Waiver has
expired.

Benefits

Q. Do the same qualifying events in place for employees' health plans apply to separated employees, whether under DWMBP or COBRA? Specifically, can the plan be converted to a family plan in case of birth or adoption occurring after separation?

A. The same qualifying events apply to all participants in the health plan regardless of DWMBP or COBRA status. Family coverage can be elected due to birth or adoption provided the change is made in the 30-day period for qualified status changes.

Q. How is a dependent, at present covered by my medical insurance, affected if I accept the SSVSP?

A. Dependents covered under the plan can be continued under the Fermilab coverage, as long as they are eligible dependents. Participants that are retirement eligible can continue coverage under the Retiree medical coverage for themselves and their dependents. Participants that are not retiree eligible can continue coverage for themselves and their dependents under COBRA. The coverage is the same as currently in effect.

Q. What will happen to my medical insurance if I am accepted into the SSVSP?

A. Each person will have the opportunity to sign up for continued medical coverage, either through employee-paid COBRA (Consolidated Omnibus Budget Reconciliation Act, passed in order to provide continued group health insurance coverage that might otherwise be terminated) or, if the person is eligible for retirement, through retiree medical insurance. More specific information will be provided on the SSVSP website and via the Benefits Department for individual questions.

Q. A portion of my salary currently goes to the Flexible Spending Account for medical expenses. If I am laid off, will (or can) the laboratory continue this deduction from the severance pay? If not, what other opportunities are there to continue in this program?

A. Contributions for Flexible Spending Accounts cannot be taken from severance pay. Flexible Spending Accounts are terminated on an employee's last day of employment. Healthcare Flexible Spending Accounts may be continued under COBRA for the remainder of the calendar year. Dependent Care Accounts are not eligible for continuation under COBRA.

Q. What happens if Fermilab approves tuition assistance for a quarter or semester, but the employee accepts the SSVSP before that quarter or semester ends? Will the employee have to pay the lab back? If not, will the employee still have to submit a zero balance form and proof of grades?

A. If you received a tuition advance, you must pay Fermilab for the amount you received before your last day at the lab. Then, when you successfully complete the course, submit your final grade report, together with all other required documentation as described in the Tuition Assistance policy, and Fermilab will reimburse you for the completed course tuition, fees and textbooks. All paperwork must be submitted within 60 days of completing the course.

Q. If I accept the SSVSP and my child is currently receiving an FRA scholarship, will my child still be eligible for the scholarship?

A. Per the FRA Scholarship Program Policy Guidelines, if the employee is terminated as a reduction in force, any child who already has a scholarship may continue it to completion; however, other children are not eligible.

Retirement

Q. If I am eligible for retirement and I accept the SSVSP, can I still retire? Will I receive severance pay? Retiree medical benefits? Will I be able to retire if I am involuntarily separated?

A. Yes. In both the voluntary and involuntary cases, if you meet the eligibility requirements for retirement, you can retire. In both a voluntary and involuntary separation situation, you will receive severance if you sign and do not revoke a General Release and Waiver. In both cases you will be eligible for standard retiree medical benefits.

A. To be eligible for retirement, employees must be at least 55 years old. They must have at least 3 years of continuous service. An employee’s age plus years of service must be equal to or greater than 65. For example, an employee who is 55 must have 10 years of service to be eligible to retire. If you were hired on October 1, 2008, or later you must be at least 55 years of age and have 15 years of service in order to be eligible to retire.

Q. How do employees initiate the retirement process (if they meet the retirement criteria) after they receive the SSVSP application materials

A. Employees interested in the retirement process should contact the Benefits department to set up a meeting. During that meeting, employees who are eligible for retirement can begin the retirement process.

A. Fermilab’s life insurance plan has a conversion and portability provision. This allows a person to continue coverage as an individual policy after leaving Fermilab, whether through retirement, layoff or resignation. If employees convert within 30 days, they do not have to provide evidence of insurability.

Q. My years here and my age give me the ability to retire if I accept the SSVSP. I will still be eligible for severance pay, but will I be able to collect unemployment for the six months that are available to me?

A. The laboratory does not make decisions about who collects unemployment. That decision is made by the Illinois Department of Employment Security (IDES). View the IDES website to contact your local office with further questions.